Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
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Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#2[deleted]
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#3Bankruptcy law firm should IPO.
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#4Maybe slowly becoming a buyers market .. prices drop and those buyers can refi .. in a few years when rates drop.
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#5Maybe slowly becoming a buyers market .. prices drop and those buyers can refi .. in a few years when rates drop.
> now am waiting for prices to fall
How are you planning to determine when the price drop has turned around so that you don’t miss out on a great deal?
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#6Maybe slowly becoming a buyers market .. prices drop and those buyers can refi .. in a few years when rates drop.
> now am waiting for prices to fall How are you planning to determine when the price drop has turned around so that you don’t miss out on a great deal?
Not OP. Fed stops raising the benchmark rate. Until it plateaus, asset prices have room to fall. Days listed is a great indicator of mispriced real estate (higher # = asking too much). Those needing to sell will drive declining comps.
Rates are expected to peak at 4.5% to 4.75% in 2023, according to the Fed’s own projections (and might go as high as 5%).
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#7So far the mortgage rates skyrocketing corresponds to an equivalent mortgage that is about 35% lower. Meaning that if you could previously afford a $1 million mortgage, you can now only afford about a $650,000 mortgage with the same payment.
If you don't see a corresponding price drop of 35% then it might be too early.
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#8Earlier quoted context omitted.
> now am waiting for prices to fall How are you planning to determine when the price drop has turned around so that you don’t miss out on a great deal?
Not OP. Fed stops raising the benchmark rate. Until it plateaus, asset prices have room to fall. Days listed is a great indicator of mispriced real estate (higher # = asking too much). Those needing to sell will drive declining comps. Rates are expected to peak at 4.5% to 4.75% in 2023, according to the Fed’s own projections (and might go as high as 5%).
Rents have gone up, and people have locked in historically low interest rates. Very few people actually have to sell, and outside of limited life situations, many will just shift to renting. That is why it is taking so long for prices to drop, and why they very well might never drop enough to match previous affordability before we hit a period of declining rates. If only 10% of owners on the market are actually feeling any financial pain, it is not enough to move the needle on the market price.
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#9So far the mortgage rates skyrocketing corresponds to an equivalent mortgage that is about 35% lower. Meaning that if you could previously afford a $1 million mortgage, you can now only afford about a $650,000 mortgage with the same payment. If you don't see a corresponding price drop of 35% then it might be too early.
Does this assume 20% down? The higher the cash component on average, the less it matters.
If it's a cash market (bay/Seattle/NYC), might be more resilient.
Re: Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse
#10So far the mortgage rates skyrocketing corresponds to an equivalent mortgage that is about 35% lower. Meaning that if you could previously afford a $1 million mortgage, you can now only afford about a $650,000 mortgage with the same payment. If you don't see a corresponding price drop of 35% then it might be too early.
Is that from the low point of mortgage rates in late last year?